1998's federal budget surplus resulted from a combination of strong growth, low inflation, declining unemployment, and improving efficiency.
Much came from excess Social Security payroll taxes.
Other enabling factors included Treasury and Federal Reserve cooperation on spending restraint that kept interest rates low, Wall Street booming, and Americans increasingly prosperous; and a 1997 agreement by the White House and congress to balance the budget.
The White House predicted surpluses over the next 15 years.
The less optimistic said projections for more than five years were difficult.
President Clinton favored using most of the surplus for Social Security.
He also wanted to fix Medicare's financial problems and expand it to include prescription drug coverage, create new IRAs with investment options, and spend on military and other critical needs.
Federal Reserve Chairman Alan Greenspan favored strengthening Social Security and paying off the federal debt.
Treasury Secretary Robert Rubin urged interest rate cuts and IMF contributions.
Democrats and Republicans both favored using most of the surplus for Social Security.
Republicans wanted income tax cuts in everything except Social Security, and an increase in allowed IRA contributions.
They supported self-employed health insurance deductions and increases for Medicare, veterans' health benefits, and schools.
Democrats favored tax credits for family caregivers.
Presidential candidate Al Gore favored spending increases while George Bush favored tax cuts and smaller spending increases.
Both supported stashing the surplus from Social Security in a lock box to pay down the debt.
